Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

ALCO has an issued capital of 65 million shares, trading at $6 each. The firms financial statements show a book value of debt of debt

ALCO has an issued capital of 65 million shares, trading at $6 each. The firms financial statements show a book value of debt of debt of $170 million, cash of $20 million, EBITDA of $50 million and depreciation and amortisation of $10 million. What is ALCOs EV/EBIT ratio?

	A.	10.8 times
	B.	13.5 times
	C.	9 times
	D.	7.8 times

please help

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Governance And Business Cycles Theory And International Comparisons

Corporate Finance Governance And Business Cycles Theory And International Comparisons

Authors: Robert E. Krainer

1st Edition

0444510494, 9780444510495

More Books

Students also viewed these Finance questions

Question

★★★★★

Over the last 40 years the Organization of Petroleum Exporting Countries (OPEC) has had varied success in forming and maintaining its cartel agreements. Explain how the following factors may...

Answered: 1 week ago

Question

★★★★★

You are working on an Excel table and realize that you need to delete a column in the middle of your table and shift the remaining data columns to the left. What is one way to do this? Highlight the...

Answered: 1 week ago

Question

★★★★★

4. A call provision with specified call dates and call prices. Mark Sexton and Todd Story, the owners of Pinjarra Air, have decided to expand their operations. They instructed their newly hired...

Answered: 1 week ago

Question

★★★★★

Use the information from Exercise 8A-2 and the following information to prepare the general journal entry to record the payroll tax expense for the weekly payroll of September 9, 201X: Wages below...

Answered: 1 week ago

Question

★★★★★

ALCO has an issued capital of 65 million shares, trading at $6 each. The firms financial statements show a book value of debt of debt of $170 million, cash of $20 million, EBITDA of $50 million and...

Answered: 1 week ago

Question

★★★★★

Preparing the Statement of Cash Fiones Balance sheet inlormation for Beckwith Products Company is presented below. Additional Information: 1. Net income for the year mas $58,400. 2. Cash dividends of...

Answered: 1 week ago

Question

★★★★★

Bloom one of the junior auditors tasked to perform a financial statement audit for Radon Company. Bloom was having a meeting with the members of the audit team to refresh their understanding on their...

Answered: 1 week ago

Question

★★★★★

Nash Corporation had income from continuing operations of $10,813,600 in 2025. During 2025, it disposed of its restaurant division at an after-tax loss of $206,600. Prior to disposal, the division...

Answered: 1 week ago

Question

★★★★★

These problems start with a bidiagonal n by n backward difference matrix D = I - S. Two tridiagonal second difference matrices are DDT and A = -S+21-ST. The shift S has one nonzero subdiagonal Si,i-1...

Answered: 1 week ago

Question

★★★★★

BTE Tax Partners is a tax accounting firm. The firm specializes in personal tax and corporate tax. The division is supported by three support departments: Billing, HR, and IT. You are the finance...

Answered: 1 week ago

Question

★★★★★

Baleen Company supplied the following data at the end of the current year: Sales commissions $12,000 Sales revenue 120,000 Research and development 17,000 Finished goods inventory, Jan. 1 7,500...

Answered: 1 week ago

Previous Question Next Question